Understanding the Arrears Table in SAP HR

In the SAP HR (Human Resources) module, the arrears table is crucial in managing retroactive payments or deductions due to changes in employee compensation data. Whether a salary increase backdated to the previous month or a deduction that couldn’t be processed earlier, the arrears table keeps track of these adjustments to ensure accurate payroll calculations.

What is the Arrears Table?

The arrears table, technically known as the ARRRS table, is a database table within the SAP HR system. It is a temporary storage space for compensation differences that occur for a specific payroll period but must be processed later.

Why is the Arrears Table Important?

1. Retroactive Calculations: The primary function of the arrears table is to facilitate retroactive payroll adjustments. This is common when changes are made to employee master data (such as basic pay, allowances, or deductions) with an effective date in the past.
2. Failed Deductions:  If a deduction couldn’t be fully processed in a previous payroll cycle due to insufficient earnings, the remaining amount is stored in the arrears table to be deducted in subsequent payroll runs.
3. Audit Trail: The arrears table maintains a clear record of the origin of arrears amounts, dates, and other relevant information for auditing and tracking purposes.

How Does the Arrears Table Work?

1. Generation of Arrears: When employee compensation data changes with a retroactive effect or an unsuccessful deduction, the SAP HR system identifies the difference to be processed as arrears.
2. Storing Arrears: This calculated difference, along with details like the payroll period, personnel number, wage type, and amount, is stored in the ARRRS table.
3. Payroll Processing:  During subsequent payroll runs, the SAP HR system retrieves the relevant arrears information from the ARRRS table and includes them in the current payroll calculations.
4. Clearing Arrears: Once processed during payroll, they are cleared or updated within the ARRRS table.

Key Points to Remember

• HR administrators configure and maintain The arrears table within the SAP HR system.
• Viewing and accessing arrears data using reports or other tools within the SAP system is possible.
• Some specific wage types are designated to clear arrears.

Example Scenario

Suppose an employee’s basic salary is increased by $200 with a retroactive date two months before the current payroll period. In this case:

1. The SAP HR system calculates the arrears amount as $400 ($200 x 2).
2. This $400 is stored in the ARRRS table, linked to the employee and the specific wage type.
3. During the next two payroll runs, $200 will be added to the employee’s regular salary for arrears processing.